Hyperbolic Discounting and Household Consumption:An Analysis based on a Large-scale Survey in Japan

Shoko Morimoto ()
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Shoko Morimoto: Osaka University, Department of Economics

No 09-19, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: In this paper, I investigate what is the difference in consumption behavior between hyperbolic and non-hyperbolic discounting households by using data from hJapan Household Survey on Consumer Preferences and Satisfaction h conducted by Osaka University. I show that the marginal propensity to consumption out of income (fixed assets, respectively) of hyperbolic discounting household is higher (lower) than that of non-hyperbolic discounting household. These results are consistent with the theoretical propositions by Laibson (1997) and Angeletos et al. (2001).

Keywords: Hyperbolic discounting; Marginal propensity to consume (search for similar items in EconPapers)
JEL-codes: D12 D13 D91 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2009-07
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Citations: View citations in EconPapers (1)

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